British skincare and cosmetics company The Body Shop is leaving the city after opting not to renew its lease.
But the blow to George St has been softened by the imminent arrival of Australian-owned women’s clothing chain Seed Heritage, which will open a new store in George St next month.
Golden Centre Mall director and property investor Jason La Hood said the arrival of Seed Heritage was "another significant addition" to Dunedin’s retail mix.
International tenants tended to "follow and hunt in packs," and he expected more to come to Dunedin’s doorstep.
Australian cosmetics giant Mecca announced earlier this year it would open a store in Dunedin within the second half of the year.
"With the arrival of Mecca, Seed followed and you’ll find that other international offerings that we don’t have in Dunedin will follow," Mr La Hood said.
Seed Heritage has stores in Auckland, Christchurch, Wellington and Mount Maunganui.
Its Dunedin store, near the entrance to the Wall St Mall, formerly housed New Zealand women’s fashion brand Pagani for the past seven years, which moved inside the Meridian Mall last month.
A Wall St Mall spokeswoman confirmed that Seed Heritage would arrive at the mall in September.
The Body Shop entered into administration in the UK in February, before the company filed for bankruptcy in the US and Canada in March.
The Dunedin store’s roller door could be seen almost fully shut and stock had been cleared from inside.
The Body Shop did not respond to repeated requests for comment by deadline.
A Golden Centre Mall spokeswoman confirmed that The Body Shop had chosen not to renew its lease in the mall and this had now expired.
The Body Shop had been going through some changes that had impacted its operations in New Zealand and internationally, she said.
"Despite efforts made to accommodate the company’s circumstances so that it could continue to trade, the decision was taken by The Body Shop to close the store."
A new tenant was expected to move into the site within the next few weeks, she said.
Mr La Hood said the mall had given The Body Shop "every opportunity to try and make it work for them".
They had been a great tenant and their replacement was "new, fresh and vibrant," he said.
"Every retailer has their day, unfortunately, and I wish them all the best."
